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Investor caution advised in April
Phuong Thao
Monday,  Apr 2, 2018,23:21 (GMT+7)

Investor caution advised in April

Phuong Thao

HCMC – Securities experts have advised investors to stay cautious this month as the stock market has been dependent on a number of large caps while turnover has ebbed sharply recently.

Although the VN-Index of the Hochiminh Stock Exchange has grown swiftly since early this year, the trend has relied merely on some large caps such as GAS, VIC, VNM and VJC. In the past sessions, bank stocks have experienced sluggish trading after their strong rallies.

Trading value has been shrinking while foreign investors, especially exchange traded funds, have switched to the sell side. In general, the market has yet to see new index drivers that are able to replace bank stocks, securities expert Nguyen Huu Binh is quoted by tinnhanhchungkhoan.vn as saying.

Currently, investor sentiment is still supported by good company earnings in the first quarter and annual general meetings by large enterprises. However, global stock markets are tumbling, thus leaving negative impact on Vietnamese equities.

Given the lack of market drivers, the main index is likely to drop to 1,100 points in the first two weeks of April. Otherwise, it could hover around 1,150 or 1,200 points if key stocks do not perform better, the expert said.

Dang Thanh The, strategy director at KB Vietnam Securities Company, said the VN-Index advanced early last month, buoyed by large-cap stocks and those in the banking, securities and property sectors. However, only heavyweights were able to maintain gains in the second half of March.

Therefore, the domestic market may see some volatility this month as global markets have tumbled, The predicted.

The VN-Index jumped to new highs, closing up 0.63% last Friday. For the week, the index added 1.9%, marking the seventh week of gains in a row.

For the month, the market increased 4.6% for a seventh consecutive month. In the January-March period, the index soared 19% on top of the 22% surge in the last quarter of 2017.

Leading gas group GAS was the top contributor to the day’s gains as the price of Brent crude oil rose to above US$69 per barrel in Asian trading. Other energy-related stocks also gained to help narrow their losses for the week, such as PVD and PVS.

Among the top performers in the first quarter were property firm VIC, consumer goods producer MSN and jewelry enterprise PNJ.

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